Here is GoldenNaim from sushi, and I want to share my personal opinion.
Firstly, as a person living in France, i’m very proud and happy to see this MIP6 Application from one of the largest bank in France ( top 2 ) , in UE ( top 5 ) and in the world ( top 20 ) .
It shows us how TradFI and DeFI protocol can work together.
More important : I believe that an important part of institutional funds will probably come from the activity of refinancing & loan.
It’s a win-win deal for TradFI & DeFI
A small tech briefing :
The transparency is important for the community. Let’s take a look of the ERC20 OFH Token contract
Even if the source code isn’t open, we can retrieve these data :
400 ( )
VULC01 ( )
VULC01 ( )
FR0013510518 ( )
100000 ( NB : 400*100000 = 40,000,000€ - same amount)
1588896000 — Friday 8 May 2020 00:00:00
1747180800 — Wednesday 14 May 2025 00:00:00 — Maturity Date ( )
1620950400 — Friday 14 May 2021 00:00:00 —
These data correspond with the bond here : Covered Bond Label
Even if it’s an ERC20 Token, by reading the potential failed log events, a lot of improvement have been done with, it seems, the goal to match traditional standard for this type of bonds ( whitelisted investors, possibility to lock/unlock the token, impossibility to transfer the token after a date ). List of errors which can be emitted by the contract :
ERROR : Only issuer can perform this action ( )
ERROR : Subscription ticket not locked
ERROR : Transfer balances failed
ERROR : Issuance has matured. Tokens cannot be transferred anymore ( )
ERROR : Only operator with registrar role can unlock token ( )
The contract has been created by another contract ( CAST FRAMEWORK ? ) :
We can still use the function : getTokenByName(string name) , getAllTokens().
getTokenByName(“VULC01”) returns the correct address of the OFH Tokens held by Societe generale :
0x9915CeD2820082a25A8992752AA43bCB0E1d1097 . ( )
- Only a whitelisted address can use the contract, otherwise you the contract will return the error :
Calling address should match registrar agent
Short resume of the OFH Tokens / covered bonds :
If I read correctly, from multiple sources, they are 100% backed by home loans.
The cover pool is composed of multiple mortgage, which represent a large over-collateralization , up to 140% ( )
Every trimester, a global report can be downloaded here for people who want to know more about what is behind :
These bonds had ( and still have ) a strong AAA from Fitch & Moody, with a stable outlook, official source : ( )
OTC Trading // exchange for security tokens
Following the launch of Trident, Sushi will begin formalizing franchised pools for institutional and other permissioned use cases. Franchised pools are a way to allow users to provide liquidity on decentralized exchanges while meeting their compliance needs. As such, these pools will be differentiated from the main Trident AMM system and will allow whitelisting and similar features for liquidity providers and swappers.
Let’s discuss another day about Franchised pools available soon on Sushi.
Risks & Benefits
For this specific DAI Loan, the risk seems extremely low, especially because of the over-collateralized percentage ( the french Law want a minimum of 125% , it’s around 140% ). Otherwise, the liquidation process can be done quickly.
Well, all DeFI’s actor must be happy of this news. The bond refinancing is a big market, with serious institutional investors, who are able to inject hundred of billions inside our eco-system, which is exactly what we want and I’m personally very happy for this potential collaboration between Maker & SG .